Analysts play an important role in capital markets. But investors need to educate themselves about the role of analysts. In today's fast-changing investment climate, it is often hard for investors to know where to turn for objective guidance about industry trends and issues that may affect their interests. Analyst recommendations are just such an issue. Strengthening that understanding is the purpose of this Guide.

The Guide covers two basic types of issues. The first stems from the fact that analysts' ratings today do not have clear, standardized meanings. The second relates to the potential conflicts of interest that an investor should be aware of in assessing the usefulness of any particular analyst recommendation.

In addition, a Glossary of Analyst Research Terms is also available to help investors better understand many of the investment terms found in analyst research reports about stocks, bonds, and other investments.

"In preparing this Guide, we hope to assist both current and potential investors in successfully navigating through the large amount of financial information that is available today. Analysts can be a source of valuable information, but only if their role in the financial community is well understood," said Mary L. Schapiro, President of NASD Regulation, Inc.

The National Association of Securities Dealers, Inc. (NASD) is the largest securities-industry, self-regulatory organization in the United States. It is the parent of NASD Regulation, Inc., the American Stock Exchange, LLC and NASD Dispute Resolution, Inc. For more information about the NASD and its subsidiaries, please visit the following Web sites: www.nasd.com; www.nasdr.com; www.amex.com; www.nasdadr.com.